Tata Steel Ltd shareholders voted out industrialist Nusli Wadia as the Independent Director of the company with immediate effect.
Tata Steel held an Extraordinary General Meeting (EGM) on Wednesday to put to vote a resolution by Tata Sons, the promoter of the company, for removal of Mr. Wadia as a director. The results were announced on Thursday.
As per the results 90.80 per cent shareholders voted in favour of the resolution supporting Tata Sons while 9.20 per cent of the shareholders voted against the resolution.
According to stock exchange filing of the company, out of a total of 62.55 crore votes, 56.79 crore votes were in favour of removal of Mr. Wadia while the rest wanted him to continue.
While 100 per cent of the promoters vote were for Mr. Wadia's removal, 82.5 per cent of institutional shareholders supported his ouster. Over 84.4 per cent of retail shareholders also supported the resolution.
Both institutional and retail investors voted in similar pattern with a significant majority well beyond the three-fourth’s majority mark in all category.
Wadia absent
Mr. Wadia did not attend the meeting but had made an appeal to shareholders through a letter to vote as per their conscience for what is right for the company and more important for the institution of Independent Directors.
On Thursday Tata Motors Ltd conducted an EGM to put to vote a resolution for removal of Mr. Wadia as director of the company. The resolution for removal of ousted Chairman Mr. Mistry was not put to vote as he had already resigned from the company on Monday. Tata Sons has moved a resolution for the removal of both.
Like in the case of Tata Steel, Mr. Wadia did not attend the Tata Motors EGM to face shareholders. He had written a letter to shareholders to vote with their conscience and to protect the office of Independent Director. Majority of the over 60 speakers spoke in favour of Tata Sons and supported the resolution for removal of Mr. Wadia while a very few speakers justified Mr Wadia’s point of view.
The EGM was conducted by Independent Director Subodh Bhargava who was made Chairman of the meeting.
Mr. Hussain went on to justify the investment in the Nano project and said it had enhanced the name of the company among global auto majors. He said Tata Sons is committed to unravel the cross holdings in group companies in due course.
On Friday, the shareholders of Tata Chemicals will meet to cast their vote on a resolution for Mr. Wadia’s removal.
